Murata Manufacturing Co., a key supplier of iPhone components, is considering shifting a portion of its supply chain operations to India. This move aligns with Apple’s broader strategy to diversify its manufacturing footprint beyond China and strengthen its presence in emerging markets. By taking this step, Murata aims to establish a foothold in India’s rapidly growing electronics sector and support Apple’s evolving supply chain needs.
Tamil Nadu to Host Murata’s First Operations in India
Murata has decided to initiate capacitor packaging and distribution operations in Tamil Nadu’s OneHub Chennai Industrial Park by the fiscal year 2026. The company has secured a five-year lease worth ¥1 billion ($6.6 million) to evaluate the feasibility of long-term expansion in India. By selecting Tamil Nadu as its initial location, Murata benefits from the state’s robust industrial infrastructure and its commitment to fostering high-tech manufacturing investments.
India’s ‘Make in India’ Gains Momentum
Murata’s decision significantly bolsters the ‘Make in India’ initiative, which aims to position the country as a global manufacturing hub. Over the past few years, India has witnessed an increasing number of global electronics manufacturers relocating production and assembly operations to its shores. This trend underscores the Indian government’s success in attracting foreign direct investment by offering incentives, easing regulations, and improving industrial infrastructure.
Infrastructure Challenges Pose Short-Term Hurdles
Despite the promising outlook, Murata has highlighted infrastructure limitations. Particularly power supply issues, as a key barrier to setting up large-scale production in India. Reliable electricity, advanced logistics, and a well-developed component ecosystem remain critical for companies seeking to manufacture high-tech electronic components. Nevertheless, Murata remains committed to overcoming these challenges and aligning with customer shifts in global supply chain dynamics.
Apple and Google Drive India’s Manufacturing Expansion
Apple’s strategy to diversify its supply chain has encouraged multiple suppliers. Including Murata, to explore India as a potential manufacturing hub. Meanwhile, Dixon Technologies India, which assembles Google’s Pixel smartphones, expects its revenue to more than double this fiscal year. This impressive growth highlights the increasing confidence of global technology firms in India’s ability to support large-scale electronics production.
Dixon Technologies Reports Record Revenue Growth
Dixon Technologies India reported a revenue of ₹177.13 billion ($2.04 billion) for the financial year ending March 2024. Marking a 45% increase. This surge in revenue demonstrates the growing importance of India’s electronics manufacturing sector. And its ability to scale production for global brands like Google. By expanding local production, Dixon helps reduce dependency on imports and strengthens India’s self-reliance in consumer electronics manufacturing.
India Emerges as a Global Electronics Manufacturing Hub
The growing presence of companies like Murata and Dixon Technologies signals. India’s emergence as a key player in the global electronics manufacturing landscape. Government initiatives, combined with the strategic realignment of global supply chains, continue to drive investments in the sector. As more multinational corporations seek alternatives to China, India stands out as a viable destination for large-scale electronics production.
Conclusion: India’s Manufacturing Sector Poised for Growth
Murata’s move to India reflects a broader trend of supply chain realignment that benefits the country’s. Economy and its role in global manufacturing. While infrastructure challenges remain, the government’s efforts to improve industrial facilities. And attract foreign investment will likely accelerate India’s rise as a leading electronics production hub. As Apple and Google deepen their manufacturing presence in the country. India’s electronics sector is poised for unprecedented growth in the coming years.
